D1.Account On January 1 of the current year, Rhondell Corporation has accumulated E & P of $80,000. Current E & P for the year is $240,000, earnedevenly throughout the year. Elizabeth and Jonathan are sole equal shareholders of Rhondell from January 1 to April 30. On May 1, Elizabethsells all of her stock to Marshall. Rhondell makes two distributions to shareholders during the year: a total of $128,000 ($64,000 toElizabeth and $64,000 to Jonathan) on April 30 and a total of $224,000 ($112,000 to Jonathan and $112,000 Marshall) on December 31.Determine the allocation of the distributions by completing the table below. Assume the shareholders have sufficient basis in their stock forany amount that is treated as return of capital.If an amount is zero, enter "0". If required, round any division to two decimal places and use in subsequent computations. Round finalanswers to the nearest dollar.April 30 distribution of $128,000December 31 distribution of $224,000FeedbackFrom CurrentE & PXXFrom AccumulatedE & PXXTreated asReturn of Capital0 ✓$32,000ACheck My WorkAccumulated E & P is the total of all previous years' current E & P (since February 28, 1913) reduced by distributions made from E & P in previousyears. It is important to distinguish between current E & P and accumulated E & P because the taxability of corporate distributions depends onhow these two accounts are allocated to each distribution made during the year.

Name: D1.Account On January 1 of the current year, Rhondell Corporation has
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: D1.Account On January 1 of the current year, Rhondell Corporation has accumulated E & P of $80,000. Current E & P for the year is $240,000, earnedevenly throughout the year. Elizabeth and Jonathan are sole equal shareholders of Rhondell from January